Student loan bill to force Sallie Mae to cut 2,500 jobs

Student loan lender Sallie Mae saw its profit soar in the first quarter, but says it will lay off 2,500 workers.

The McLean-based company said it will be forced to restructure its operations in the wake of federal law that prohibits private lenders from making federal loans after June 30.

“Ironically, one quarter before the government takes over loan originations, Sallie Mae broke its own [Federal Family Education Loan Program] origination record, a testament to the service provided by our talented employees,” CEO Albert Lord said in a statement. “Of more immediate concern, however, is the unpleasant task of reducing our work force by 2,500 persons and restructuring our operations.”

The move will reduce Sallie Mae’s work force by one-third.

For the first quarter, Sallie Mae reported a profit of $240 million compared to a loss of $21 million during the first quarter of 2009.